Rural Development through Rural Industrialization: Exploring the Chinese Experience study by Sanjeev Kumar A significant aspect of China’s economic reform has been the introduction of new institutions like TVEs(Township,Village Enterprises) that means RURAL INDUSTRIALISATION which have been vital for rural development in China. Impressive rural industrial growth has raised the income of the rural people and is therefore a powerful force in poverty reduction in China. The agriculture sector alone is not sufficient for sustainable rural development. What makes a rural village rich? The most striking feature of China’s economic reform is that it led to a creation of a whole new economic sector of TVEs which became a very dynamic element in China’s economy. Agriculture provided more than 50 percent of China’s GDP in 1952 but it fell to 14 percent in 2004, over the same period TVEs went from none to one third of GDP. Thus, the importance of non-farm economic activities in China has been recognised. GDP PER CAPITA USA-49000 $ CHINA-8500$ INDIA-1491$ Huge difference in GDP PER CAPITA THE IMPORTANCE OF THE FOOD PROCESSING SECTOR The food processing industry is of enormous significance for the development of large agricultural countries like China. Rural areas, rural enterprises and the agri-food sector have played key roles in China’s ongoing reforms and development. The Chinese Government has also accorded the sector with a fiscal/tax concession to encourage commercialization and value addition to agricultural produce. The vital importance of the food processing sector in improving the income of peasants and generating employment in rural areas has been recognized. THE GROWTH AND DEVELOPMENT OF THE FOOD PROCESSING INDUSTRY IS ALSO EXPECTED TO STRENGTHEN THE LINKAGE BETWEEN THE INDUSTRY AND AGRICULTURE THROUGH DIFFERENT CHANNELS: (a) fast growth in food processing sector would have a backward linkage effect for the agriculture sector, perhaps enhancing the profitability of food crops; (b) the production and cultivation of vegetables and food crops under the quality guidelines of modern food processing industry would make the agricultural production function more efficient; (c) the demand for consistency in quality may help standardize the environment for cultivation and crop preservation; (d) direct links between farmer and industry would get rid of middlemen and agents; (e) improvement in the value addition chain (from fresh to processed) can lead to favourable terms of trade for agriculture in domestic as well as international markets. CONCLUSIONS • The agriculture sector alone is not sufficient for sustainable rural development. Besides a diversified agriculture, employment through rural industrialization is a sustainable and alternative solution to the eradication of poverty in China and India. Furthermore, agriculture has to be agro-business rather than subsistence agriculture. A comprehensive and effective legal structure needs to be established to safeguard the rights and interests of workers, as well as to prevent irregularities in financial matters especially at the local level. •Since workers, especially women, face disadvantages in regard to wages and contracts, there is a need to create a more gender friendly labour policy as well as to properly implement existing policies. •Since rural enterprises have proved to be an effective solution to the problems of rural development, central government should consider ways and means of implementing preferential policies effectively in central and western China. •Tax advantage should be granted to rural enterprises in proportion to their contribution to local economic development, especially to agriculture and social development. •Rural enterprises have reached a level of production where more technical inputs are required. The state should play an active role in promoting the technological development of rural enterprises so that their products are more acceptable in the international market. JUST BY GIVING PACKAGES AND 5 KG MONTHLY RATION IS NOT GOING TO IMPROVE RURAL LIFE,GOVT SHOULD TAKE SOME DECISIONS ABOUT RURAL INDUSTRIALISATION.
Posted on: Tue, 09 Jul 2013 14:18:34 +0000
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